Business & Tech

Wall Street Journal Reports that Sprint and Bellevue's T-Mobile Are Talking Merger

The Wall Street Journal reported Wednesday that Sprint and T-Mobile are in talks to merge to better compete with the two largest wireless carriers, AT&T and Verizon. However, any deal would not be quick.

The Wall Street Journal reported Tuesday that Sprint Nextel Corp. of Overland Park, Kansas, and T-Mobile USA, the Bellevue-based subsidiary of Deutsche Telekom AG, are in talks to merge, though it cited only "people familiar with the matter."

If a merger occurred, it would bring the third- and fourth-largest  wireless carriers in the U.S. together. According to the Journal:

Sprint has recently stemmed subscriber losses but the carrier still lacks the size to compete for hot devices like Apple Inc.'s iPhone, which both AT&TInc. and Verizon Wireless carry. A deal would let the heavily indebted company book big savings on marketing and overhead.

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T-Mobile USA, a subsidiary of Deutsche Telekom AG, is falling behind in the race to build next-generation networks. It also will soon need more spectrum. A deal could help the German parent solve those problems without heavy investments.


Read the entire article here: http://online.wsj.com/article/SB10001424052748704758904576188460213670064.html#ixzz1G69pcUqC

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